The crypto exchange Coinbase unveiled the new metric called the H-index in order to correct distortions caused by airdrop activities when tracking adoption onchain.
CoinbaseThe exchange is a U.S. publicly-traded cryptocurrency, well known for the development of Base, a layer-2 solution for EthereumThis new metric will provide an accurate measurement of the blockchain adoption. This new metric attempts to minimize distortions due to airdrop activities and Sybil attack.
The aforementioned is a research report Coinbase announced on Friday that the excess blockspace created by investments in blockchain technology has made onchain transactions more affordable and fueled networks with new decentralized applications. This made it harder for analysts, who are trying to keep track of ecosystem adoption.
Coinbase claims that airdrops and Sybil attacks can skew traditional network metrics, such as the total number of transactions or addresses active each day. Coinbase suggests a new metric, the h index, to balance the level of onchain adoption. The hindex is a count of the addresses which receive transactions that originate from at minimum that number of sending addresses.
“In other words, an h-index of 100 means that 100 different receiving addresses had received transactions from at least 100 unique sending addresses over a given time frame.”
Coinbase
Coinbase found that when the h-index was applied, Ethereum, Base, Arbitrum, and Polygon networks had the highest user activity in the week ended June 6, according to its findings.
Coinbase is confident that the H-index will shed light on the imperfection of the current metric. “new perspectives on comparative chain adoption by mitigating the outsized influences of Sybils and measuring growth more broadly.”
However, the exchange did note that some challenges remain. These include differences in execution environments of blockchains, which could affect transaction formats or data interpretation. The influence of smart contracts or exchange wallets is also important. “could also distort numbers,” Coinbase admits.
Sybil attacks The type of network attack A single entity in the crypto world creates fake nodes or identities to manipulate a network. The activity of creating false addresses or accounts to artificially inflate the volume of transactions or user activity to manipulate network metrics can be used to manipulate data and network metrics.
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Source: crypto.news